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By A. Osouli, B. Moradi Bajestani

"Increase in permeability of rock mass is vital for both petroleum and geothermal applications. Hydraulic fracturing is a common method to create and increase the permeability for production. Due to the complexity of fracture propagation in a naturally fractured medium, understanding the interaction between hydraulic fracture (HF) and natural fracture (NF) is of great importance to optimize the fracturing process. The possibility of interaction between HF and NF is partly a function of orientation. Various scenarios are predictable for hydraulic fracture regarding the intersection with NF such as being arrested by NF, crossing NF or crossing the fissure while injecting water into it. Different parameters such as geomechanical and geometrical properties of surrounding rock mass, the operational parameters such as injection rate and the angle between created hydraulic fracture and natural fracture (approach angle) can affect the result of hydraulic fracture and natural fracture intersection. In this paper, using a series of flow-coupled Distinct Fracture Network (DFN) simulations, hydraulic fractures were analyzed to investigate the influence of the aforementioned parameters on the hydraulic fracture propagating. Results show that the most significant parameters affecting the interaction of natural and hydraulic fracture are orientation of the intersection as well as injection rate. The interaction and fracture propagation in NF and HF intersections are also studied and discussed in detail.INTRODUCTIONThe hydraulic fracture technology has substantially changed the oil, gas and geothermal industries. With the help of this technology, extraction of fossil resources from tight shale reservoirs will be economical, feasible and sustainable. Due to presence of massive oil and gas trapped in these reservoirs, this technology has been the center of attention for the past 40 years (King, 2012). Hydraulic fracturing is the process in which high pressure water is pumped into shale unconventional reservoirs with low to ultralow permeabilities. With this process paths are created in these mediums for delivering oil and gas to horizontal wellbore and increase the surrounding rock medium permeability. Economical and sustainable stimulation of these tight reservoirs is highly dependable on our understanding in regard to fracture propagation in the highly complex rock medium. Hydraulic fracturing process in rock mediums with preexisting natural fractures is more complex because of the high possibility of Hydraulic Fracture (HF) being arrested or deviated by Natural Fracture (NF). Also, HF and NF intersection can influence the required pumping pressure, injection rate, the outcome of horizontal wellbore and the affected geological underground zones. Since the 1950s, numerous studies have been conducted to predict and plan fracture propagation with the help of modeling and simulation methods. Having a thorough and accurate prediction of fracturing process will not only prevent stimulation of unwanted geological zones or pollution of aquifers, but also will improve the efficiency of the fracturing process. Previously, several studies have been conducted in order to investigate and analyze the interaction of hydraulic fracture and natural fracture (Cottrell, Hosseinpour, & Dershowitz, 2013; Doe, Lacazette, Dershowitz, & Knitter, 2013; Shakib, 2013; Zhang & Jeffrey, 2006)."

Jan 1, 2015

By W C. Shakespeare

The Ontario Committee on Taxation is making a comprehensive study of taxation in the Province of Ontario, and in this connection has received representations concerning mining taxation from a number of interested parties. Some of the more important recommendations on mining taxation are reviewed in this article. Introduction FOLLOWING the appointment of the Federal Royal Commission on Taxation, the Ontario Government, effective in November, 1962, appointed the Ontario Committee on Taxation to review taxes and revenues available to the Province of Ontario and its local governments, to co-operate with the Royal Commission on Taxation and with any other bodies of enquiry appointed by other provincial governments, and to make such recommendations as it sees fit to the Prime Minister of Ontario and the Executive Council. The members of the Committee are: MR. L. J. SMITH, F.C.A., Toronto, (Chairman) MR. ERIC HARDY, Toronto DR. R. CRAIG MCIVOR, F.R.S.C., Hamilton MR. CARL A. POLLOCK, Kitchener MR. R. BREDIN STAPELLS, Q.C., and Toronto. Like its Federal counterpart, the Royal Commission on Taxation, the Ontario Committee has held public hearings, has received written

Jan 1, 1965

By D. A. Stokes

"In October of 1980, Fording's 15 000-ton capacity clean coal silo was put into operation. The silo was unique in that it was designed to allow the mass flow of material, coupled with a sophisticated computer-controlled dynamic loadout/weighing system.On May 1, 1982, an explosion, attributed to a methane buildup, devastated the top of the silo. .As a contingent plan to minimize the effect of the production loss the conveyance to the silo top was reconstructed and the silo' was back in operation by mid-June 1982, although the silo top was left open to prevent further methane buildup. As dust emissions occurred during loading ofthe silo, an extensive study was undertaken to establish dust control for the silo, while at the same time providing methane detection and control.The study, conducted for Fording by the Cambrian Engineering Group of Calgary, involved an extensive search and investigation of existing coal silos. The study concluded that there IS no universally accepted method of controlling methane emissions in coal silos.The study also produced a unique conceptual design for handling methane, while at the same time, protecting the environment . Fording's Clean Coal SiloThe silo, located at Fording Coal's Fording River metallurgical coal operation, is utilized for the storage and load out of cleaned thermally-dried metallurgical coal.The silo was constructed in 1979 and 1980 to reduce unit train loadout times and to facilitate the handling of “special shipments"" of coal. The silo went into operation in October 1980, under manual control and utilized computerized, automated loading by February 198I.The silo is 21 m in diameter and 76 m high, with a nominal capacity of IS 000 live tonnes. The coal storage portion of the silo is 21 m in diameter and 48 m high, utilizing 2 steep-angled hopper outlets allowing mass flow of the stored coal during train loading. Each hopper has a control gate and a discharge chute, one chute for bulk loading, the other for trim loading of coal into the rail cars."

Jan 1, 1986

By J. Ran

"Hangingwall sloughing is the major cause of unplanned stope dilution in open stope mining. Understanding the hangingwall sloughing mechanism can guide the stope design in minimizing the unplanned dilution and improving muck size and therefore mining efficiency. Though the modified stability graph method may be adopted to assess the hangingwall stability, for mines where the hangingwall is inaccessible, the required parameters are difficult to define and some of the simple influential factors cannot be easily identified in this method to provide guidelines for stope design.This paper identifies the main modes of hangingwall sloughing in open stope mining based on detailed data collected from mined-out stopes and site observations, applies the voussoir beam notation to analysis of the hangingwall sloughing mechanism, compares the model analysis results with the collected stope data, and provides guidelines for stope design and model application. Finally, examples are given to demonstrate the time and support effects on hangingwall sloughing and stope dilution."

Jan 1, 2002

By W. D. Watson

"Early in mine development at Quintette Coal Limited major problems were encountered with the fleets of primary equipment which seriously hampered production. These major fleets (cable shovels, hydraulic shovels, hydraulic drills and electric trucks) have consequently been the focal point of maintenance efforts. Some were prototypes in the Canadian mining scene and brought with them new concerns to test their skills. The problems were studied and the category and areas which were having the greatest impact on the reliability of the equipment were determined. Once defined, priorities were established and a program was initiated which was designed to accomplish a resolution. Resulting from implementation of this systematic approach, over the past three and one-half years, the fleets are now giving good reliability and industry standard availabilities. Along with these significant achievements, cost per operating hour on some of the equipment fleets has decreased substantially and continue a downtrend through 1987. This paper identifies the problems and describes the resolutions. IntroductionIn the early years of the mine development, Quintette Coal Limited (QCL) experienced production shortfalls due to problems with the major excavator and haulage fleets. A large fleet of hydraulic excavators had been purchased, and QCL was among the first northern users of all hydraulic blasthole drills. They were also using some prototype equipment and encountered problems which were not common on other types of equipment or were unknown.Because of these unique problems and lack of experience from other mines to draw on, an analytical approach was taken to areas and associated causes of the delays affecting the availability and reliability of equipment. This was done by dividing the equipment downtime into seven classifications of delays, i.e. maintenance, electrical, hydraulic, mechanical, damage, service and preventative maintenance, and tires; and then each was expressed as a percentage of total downtime. Subsequently each of the delay classification was divided into categories e.g. electrical to six categories - wheel motors, main alternator, relays, cards, no propel, lighting and 24 V system. Then, the basis for further study had been established.From this preliminary analysis of historic records, it was possible to determine the areas which were causing the majority of the downtime. These areas were then analyzed to evaluate causes and to determine possible solutions to the problem s. This paper addresses the major fleets, their problems and eventual solutions. Plea se bear in mind that the over-all objectives were to increase physical availability and reliability."

Jan 1, 1988

By E. J. Wade

The general location, climatic conditions and access of the Tasu mine are covered briefly, with comments on the Jack of conventional transportation and communication facilities. The Haïda story of Tasu and early at-tempts at production are presented, together with a discussion of the government legislation which throttled exploration and production in the late fifties. General and specific details of local geology, mineralogy and current ore reserves are also covered.

Jan 1, 1968

By A. Broussaud

The paper describes the advanced grinding control system implemented at Newmont Ahafo gold mine, Ghana in 2009 and 2010. It shows how the different components of the Advanced Process Control (APC) system cooperate for increasing plant performance. The SABC circuit processes hard rock from different pits mixed with a variable proportion of oxides. The control strategy is designed to address specific disturbances, including start/stops of pebble crushers, unavailability of oxides, changes in rock size distribution resulting from segregation in the stockpile, and changes in ore type and hardness. The system consists of an expert system per se with extensive use of fuzzy logic, supplemented by an online dynamic model of the process used as a soft sensor, a VisioRock? rock size measurement system over SAG mill feed before addition of recycled pebbles, and an AudioMill? system to analyze the SAG mill sound and detect impacts on liners. All these components are embedded in the same OCS© software platform, which, among other benefits, makes it easy to support the entire system remotely. The paper details the physical constraints and the variables that are manipulated. It describes the control strategy and the contribution of each component of the system. It also describes the project implementation and the performance of the system. In addition to a strong involvement and support of management, the very good acceptance of the operators has been facilitated by the remote access system that made it possible to immediately modify the system each time it was needed during the baby sitting phase. The system made it possible to increase gold production significantly through increases in tonnage and recovery thanks to a better control of the grind size through a stabilization of the secondary ball milling circuit and an improvement of the operating conditions of the classifying cyclones.

Jan 1, 2012

By M. Tardif, F. L. -Lavoie, M. Ruel

"In mineral processing, it is often very difficult to reliably measure several key operation variables. The harsh environment and high temperature encountered in pyrometallurgy processes lead to some difficulties when selecting the instruments, valves and actuators. If an important variable cannot be measured or manipulated adequately, controlling it can really become a big challenge. Sometimes, it is simply impossible to find the perfect equipment for the task. To help overcome these difficulties, a different approach is required. This approach will not correct the inherent problems related to the instruments and valves, but will cope with these problems. This article will demonstrate how modern process control techniques can be used to solve complex problems while remaining easy to implement. In this article we will described how soft sensors and multivariable fuzzy logic control were implemented at Koniambo Nickel to stabilize the furnace feed and allow for safe and reliable operation of an 80 MW DC arc furnace.INTRODUCTION Process Overview The process plant at Koniambo Nickel SAS is located in the North Province of New Caledonia, 310 km north of Noumea. The nickel-bearing ore is mined in the nearby Koniambo massif. After being screened and crushed, the ore is transported to the processing plant using a 12 km conveyor. After stacking in two blending piles, the ore, containing 2.3% nickel, is fed to the processing plant where it will go through the NST process (Nickel Smelting Technology) before being sent to refining and shotting. This article will focus on the improvement to control of the NST processes. The first steps of this process consist of milling the ore and removing all moisture through calcining (Figure 1)."

Jan 1, 2017

By Sherwin F. Kelly

"THE TITLE I have chosen is certainly not one of those self-explanatory ones. I shall endeavour to make its significance clear during my remarks but, in the hope of minimizing that inevitable exodus which follows a good lunch such as this, I am going to withhold the final key to its meaning until the very last sentence of this talk.Some explanation is due at the beginning, however, so for those of you unfamiliar with Spanish I will explain that casa means house, or home. The casa about which I am going to talk necessitates a wide .and generous interpretation of the word, because I am using it to indicate principally that portion of the North American continent which is the home, in the western hemisphere, of British and American ideals of justice and freedom, the dignity of the individual and his right to exercise private initiative .and engage in private enterprise. In a wider sense, I am including the entire western hemisphere, which may yet stand as the last bulwark of political and industrial democracy.As for the treasures of which I am about to speak, may I remind you that there are no• material treasures but those derived from the earth, and they are derived by one of two processes, -mining and farming. These two fundamental industries are the basis, and the sole material basis, of our welfare, our wealth, our very existence. From farming, whether it be farming of the land. or farming of the sea, we obtain the food to keep us alive, healthy and able to work."

Jan 1, 1955

By J. Satur

In copper mineral processing, pyrite coexisting with copper sulfide minerals like chalcopyrite is separated by flotation as tailings and its oxidation in tailing dams causes the formation of acid mine drainage. This paper proposes carriermicroencapsulation (CME) as a new method for suppressing pyrite flotability, as well as its oxidation. In this method, an organic carrier combined with Ti is used to form a thin Ti02 layer on pyrite, which gives a hydrophilic property and acts as a protective coating against oxidation. To form the coating, a ground pyrite sample was treated with Ti-catechol complex solution under various conditions. Bubble pick-up experiments and flotation experiments showed that the treatment of pyrite with Ticatechol complex changed the hydrophobic nature of pyrite into hydrophilic even in the presence of xanthate as a flotation collector. Oxidation testing of the CME-treated pyrite by 0.02 kmol m-3 HN03 showed that Fe release was suppressed by the CME treatment with respect to the control. This is assumed to be due to the formation of Ti02 coating on the pyrite surface. The effect of CME treatment on chalcopyrite wettability is also discussed.

Jan 1, 2007

By B. E. Halbert, K. T. Himbeault, S. L. Fernandes, R. L. J. Phillips, B. J. Topp

The Beaverlodge uranium mining and milling facilities operated from 1952 to 1981 with about 94% of the ore extracted from the main underground mine and 6% from smaller satellite deposits. Decommissioning work occurred from 1982 to 1985 involving periods of shutdown, salvage and reclamation. Transition phase monitoring, leading to eventual delicencing commenced in July 1985. Over the last 15 years, discharge from the tailings management facility (TMF) and a fresh water stream, impacted during the operational phase by tailings spills, has improved in water quality for most parameters of concern. Loadings to the environment of three key contaminants (radium-226, total dissolved solids, and uranium) have consistently been less than during the operational phase with radium-226 having the greatest variability. Outstanding environmental issues associated with the recovering drainage system formerly used for tailings disposal, are being addressed in an enhanced environmental monitoring program to commence in 2000. Changes in water chemistry and the natural re-introduction of aquatic organisms are issues of concern. In the meantime, application for release from selected satellite areas commenced in 1999. This paper reviews the issues which have arisen during the transition phase, outlines how they have and are being addressed, and provides a comparison of original and current predictions of the recovery process under way at the former Beaverlodge mine site.

Jan 1, 2000

By E. L. Bruce

EUROPEAN Russia is mainly a great plain, the average elevation of which is only 600 feet above sea level and the maximum elevation less than 1,200 feet (Figure 1). The main divide between the Arctic ocean and the Black sea and Caspian sea is an indistinguishable topographic feature from which the Dneiper and Don rivers flow southward to the Black sea and the Volga river to the Caspian. The valleys of these rivers are but little below the general level (Figure 2). To the south, this great, rolling plain is broken by a low ridge of Precambrian gneisses and intrusive rocks. The Crimea is an upland from which the descent to the Black Sea coast is precipitous (Figure 3). The Ukrainian Soviet Socialist Republic occupies the southern part of the plain. It is the southwestern unit of the Union, bordered by Rumania and Poland on the west and by the Crimean Soviet Socialist Republic on the south.

Jan 1, 1938

By J. K. Weglo, M. U. Savich

"The measurement and evaluation of the noise emanating from an ST4A scooptram in an underground stope under a simulated work cycle, and under three conditions of after-treatment systems is covered.These include scooptram without muffler or filler (bare engine), an in-line small filter, compared to a larger-filter, and the larger filter with an in-line muffler in series with fume diluter, which were tested under three engine operating conditions-IDLE, wide open throttle (W. 0. T.), and working condition. This is load, short haul and dump operation.The results showed an attenuation of the scooptram at work of 8 to 15 dBA, 16 cm from the exhaust pipe of the machine, to 4.8 dBA at the operator's ear. Recommendations are made to increase the attenuation at the operator 's ear by additional improvement in design of the fume diluter.IntroductionIn current mining operations, the diesel engine provides a safe, efficient and highly mobile source of power. In the major underground mine s in Canada the most common types of diesel equipment are load-haul-dump (LHD) machines and ore trucks. In general, there is a tendency to use high horsepower, diesel LHD machines in mines to achieve maximum productivity. The increased use of diesel-powered equipment in underground mines has shown no cause pressure levels were measured at the exhaust and outlet pipe. Also, while measuring the octave band and A-weighted sound pressure levels, the operator's position was also measured."

Jan 1, 1986

By V. Prostakova, M. Shevchenko

The copper smelting gas / slag / matte / metal / solids system with the Cu-Fe-Ca-Si-O-S major elements has been a long-term focus of the present overall research program using integrated experimental and modelling approach for the phase equilibria characterisation and development of a thermodynamic database. A systematic investigation of phase equilibria of slag systems in equilibrium with Cu metal is providing information for systems where copper coexists in slag with lead, zinc, and aluminium oxides as major components. Experimental studies involve high-temperature equilibration of synthetic samples; rapid quenching; and measurement of the compositions of equilibrium phases using electron probe X-ray microanalysis (EPMA). Particularly important feature of the present study a wide range of temperatures (660-1670°C) being characterised that reveals major inconsistencies in the existing thermodynamic description of the multicomponent system, and allows to establish the thermodynamic properties from phase equilibria in a reliable way. FactSage-based thermodynamic modelling is integrated with experimental research. Initial thermodynamic assessments are used to identify priorities for experiments, planned to provide specific data for thermodynamic optimisation. Significant improvement in the accuracy of the phase equilibria description is achieved, in particular in the PbO-Cu2O-SiO2, ZnO-Cu2O-SiO2, and Cu2O-CaO- Al2O3 systems in equilibrium with metallic Cu. INTRODUCTION Slags high in lead and copper are generated in primary metal production in the smelting of lead sulfide concentrates and in pyrometallurgical metal recycling systems. The compositions of these slags are varied due to increased fraction of recycled materials in the feed as well as introduction of previously unused chemical elements to modern technology. Therefore, their processing becomes chemically more complex; in that way they contain a large number of different metals. These slags form complex non-ideal solutions (with possible formation of several immiscible slags) that can coexist with stoichiometric solids, solid solutions, mattes and molten metal depending on the bulk composition and process conditions. Predicting the outcomes of smelting and refining processes is becoming increasingly difficult. To assist in the optimisation of these metallurgical processing operations, a comprehensive research program is underway to develop accurate thermodynamic databases for these non-ferrous process systems.

Jan 1, 2019

By F. Awotwe-Appiah, P. Koshy, J. Dankwah, J. R. Dankwah

This research investigates the generation of an effective carbonaceous material from waste ‘pure water sachets’ and their subsequent utilisation as reductants for the reduction of the Opon Mansi iron ore. Composite pellets of Opon Mansi iron ore and pulverised carbonaceous material generated from waste pure water sachets were heated from room temperature to 1200 °C in a gas fired furnace for seventy minutes. The reduced pellet was analysed chemically for its oxygen and carbon content using a LECO Oxygen/Nitrogen and LECO Carbon/Sulphur analysers, respectively. It was observed that nuggets of metallic iron were readily produced with the carbonaceous materials acting as an effective reductant and source of chemical energy. XRD analysis of waste ‘pure water sachets’ revealed that the polymer was semi-crystalline with peaks that were identical to those of high density polyethylene (HDPE). Gas emission behaviour of the iron ore-PWS pellet was studied in a horizontal tube furnace at 1200 °C using an infrared gas analyser; the results revealed an exhaust gas rich in the reducing gases CO and CH4 along with CO2.

Jan 1, 2015

By Bertrand Robinson

Great advances have been made in rubber-lined pumps for the pumping of mill pulps. The Canadian Allis Chalmers alone report ov.er 300 such pumps put into service during the past four years. Pumps in which both the casing and the impeller are rubber covered have proved most economical in handling the usual run of mill pulps, effecting large savings in power, maintenance, and shutdown costs. For the handling of pulps containing comparatively large, sharper edged /articles, rubber-lined casings with hard iron impellers have been developed by the pumping departments of Hollinger and Noranda. These rubber-iron combination pumps show an appreciable reduction in overall pumping costs as compared with the all-rubber and the all-iron pumps. The power efficiency is lower in rubber-iron than in all-rubber pumps but higher than in the all-iron pumps, with lower replacement costs due to the cheap iron impellers used. Where continuous operation is essential, however, and duplication of units to take care of shutdown time for replacement of parts is not within the expenditure budget of the company, all-rubber pumps are being used t0 a greater extent. As in all items pertaining to milling operations, the economics of the situation must be studied as closely as the technical details, to arrive at the most advisable practice.

Jan 1, 1939

By Claude Deveau

"With ever decreasing feed grades, finer mineralogy and increased demand for product, it became obvious that a major step in equipment performance was required to reduce operating costs and increase production. Offsite testwork indicated that a Centrifugal separator was capable of recovering fine tantalum and that the newly developed C Series Falcon concentrator would be capable of replacing many pieces of aging equipment and provide improved performance. Further investigation led to the rental and the purchase of a Falcon C20 concentrator followed by a C10 to maximize circuit performance.Falcon Concentrators Inc’ s practice of working with the customer mirrors Tantalum Mining Corporation of Canada’s (Tanco) philosophy of continuous product development. This synergy honed valve design for continuous operation in a highly abrasive ore environment.Tanco has recently purchased two more Falcon concentrators for the recovery of additional tantalum from its spodumene circuit. These new units have additional user friendly operating features partially based on developments made at Tanco.The Falcon C Series units have enabled Tanco to maximize recovery of tantalum that was otherwise lost while using the original conventional gravity circuit."

Jan 1, 2000

By R. Khettabi

The mechanical, thermal and bioproperties of titanium alloys allow their wide use in different industries. Compared to aluminum alloys, titanium alloys are very tough, making them that much more difficult to machine than aluminum alloys. Most studies conducted on these types of materials have mainly covered and made comparisons in terms of cutting speed, cutting force and mechanical properties. Recently however, their sustainability and environment parameters have begun to attract significant interest, and it has been found that machining processes generate particles that can be harmful for health and the environment. In this paper, particle emission is investigated during the turning of the titanium Ti6A14V and 6061-T6 aluminum alloys.

Jan 1, 2011

By S. Utili

"The optimal profile of a rock slope under given geometry constraint is investigated by means of the upper bound method of limit analysis. The optimal condition corresponds to maximizing stability factor. It is assumed that rock failure condition is suitably described by the Hoek-Brown criterion. Genetic algorithm is applied for locating the optimal profile. The optimal profiles turn out to be concave profiles but there are heaps around the toes of the slopes. Compared with plane profiles, the percentage of increase in stability factor can reach up to nearly 50%. The key geometry parameters of the optimal profiles are provided for practical use. The new upper bound formulation is capable of computing the stability factors of slopes of any shape, thus the stability status of a slope under man-made excavation can be monitored during the whole construction period.INTRODUCTIONIn mining industry, man-made slopes are excavated to create working surfaces. It is important to optimize the slope profile in order to maximize slope stability under certain geometry constraint. For instance, when the height and width of an excavation are assigned, a plane profile AC (see in Fig. 1) is widely applied in engineering practice, but it has been proved not the best one in terms of safety (Utili & Nova, 2007; Cala, 2007). A vertical profile ABC is the one with least stability. Thus, it can be deduced that there is a profile within the domain of the rectangle ABCD providing the highest stability. Cala (2007) compared the difference of convex and concave profiles in stability using strength reduction technique. According to Cala (2007), circular concave slopes can increase the maximum slope inclination under given factor of safety. Besides, based on upper bound theory of limit analysis, Utili & Nova (2007) assumed a logarithmic spiral profile to prove it is more stable than a plane profile in terms of the stability factor. Although the above studies attempted to seek the best circular or logarithmic spiral profiles, none of them considered the arbitrary shape of the optimal profile and its contribution to enhance slope stability."

Jan 1, 2015

By R. E. Stewart

"Using the concept of economic life and marginal analysis, it can be shown that proper equipment replacement timing can save a mining company many thousands of dollars. To assist management with determining the economic life of mining equipment, a new computer package has been developed. The package, called ERG (equipment replacement guide), incorporates all important economic factors related to equipment usage, such as operating costs, maintenance costs, salvage values, depreciation, volume of work, tax credits, inflation rates, ROJ, etc. The information is used in a series of equations which balance the costs of new equipment against the total cost of old equipment. The solution of the equations determines economic life and the point in time when the old equipment should be replaced. IntroductionIn an operating mine, equipment must eventually be replaced or downgraded for a variety of reasons. Fleets of haul trucks, dozers and other major pieces of equipment deteriorate over time until the mounting costs of maintenance and repair force either a major overhaul or the ir replacement by new and more efficient pieces of equipment.The question of determining the best time to replace old equipment has been approached in many different ways. Various methods, ranging from operating experience, intuition and physical necessity to sophisticated computer models have been devised to help cope with equipment replacement decisions . The best of the se will incorporate the most important economic factors related to equipment usage, such as operating and maintenance costs, salvage values, depreciation, work delivered, the cost of capital, tax credits and, of course, the effects of inflation.Economic TheoryThe fundamentals of equipment replacement theory grew out of the interaction between economics, engineering and finance. The use of annual cost comparisons and rate-of return calculations were helpful in handling situations in which assets with different finite lives were being compared. Later developments bringing together the concept of economic life and marginal analysis helped provide additional refinements to the theory. Taylorui showed that the displacement of an aging asset with a similar, but newer, asset can be justified economically when the marginal cost of keeping the asset one more year exceeds the minimum uniform annual cost equivalent of the proposed replacement."

Jan 1, 1980